Indiana Code - Taxation - Title 6, Section 6-1.1-42-28

Amount of deduction

Sec. 28. (a) Subject to this section, the amount of the deduction
which the property owner is entitled to receive under this chapter for
a particular year equals the product of:
(1) the increase in the assessed value resulting from the
remediation and redevelopment in the zone or the location of
personal property in the zone, or both; multiplied by
(2) the percentage determined under subsection (b).
(b) The percentage to be used in calculating the deduction under
subsection (a) is as follows:
(1) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE

1st

100%

2nd

66%

3rd

33%

(2) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE

1st

100%

2nd

85%

3rd

66%

4th

50%

5th

34%

6th

17%

(3) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE

1st

100%

2nd

95%

3rd

80%

4th

65%

5th

50%

6th

40%

7th

30%

8th

20%

9th

10%

10th

5%

(c) The amount of the deduction determined under subsection (a)
shall be adjusted in accordance with this subsection in the following
circumstances:
(1) If a general reassessment of real property occurs within the

particular period of the deduction, the amount determined under
subsection (a)(1) shall be adjusted to reflect the percentage
increase or decrease in assessed valuation that resulted from the
general reassessment.
(2) If an appeal of an assessment is approved that results in a
reduction of the assessed value of the redeveloped or
rehabilitated property, the amount of any deduction shall be
adjusted to reflect the percentage decrease that resulted from
the appeal.
(3) The amount of the deduction may not exceed the limitations
imposed by the designating body under section 23 of this
chapter.
(4) The amount of the deduction must be proportionally reduced
by the proportionate ownership of the property by a person that:
(A) has an ownership interest in an entity that contributed;
or
(B) has contributed;
a contaminant (as defined in IC 13-11-2-42) that is the subject
of the voluntary remediation, as determined under the written
standards adopted by the department of environmental
management.

The department of local government finance shall adopt rules under
IC 4-22-2 to implement this subsection.

As added by P.L.59-1997, SEC.1. Amended by P.L.119-1999, SEC.9;
P.L.90-2002, SEC.285.

Last modified: May 28, 2006